China Caixin/Markit PMI Services and Composite for August

Services 46.7

  • expected 52.6, prior 54.9
  • first time that services activity shrank since April 2020

Composite 47.2

  • prior 53.1

From the Markit report, their key findings:

  • Business activity and new orders both fall amid uptick in COVID-19 cases
  • Companies reduce their staffing levels slightly
  • Input costs rise at slower pace, output charges decline

And, commentary (in brief):

  • In the services sector, supply and demand both shrank.
  • Exports remained stable overall, though surveyed enterprises said the recent outbreaks had hurt foreign trade
  • job market for services weakened as the measure for employment fell into negative territory for the second time in three months, though the drop was slight